Finnish alcoholic drinks maker and distributor Altia has agreed to buy Norwegian rival Arcus in an all-share deal, the two companies said.
Altia's current shareholders will own 53.5% of the combined group, which is to be renamed Anora, while the owners of Arcus will hold a 46.5% stake, according to the deal.
"The merger will form a wine and spirits brand house with leading presence across the Nordics with a relevant market presence also in the Baltics," the companies said.
The combined entity had revenue of around €640 million in 2019 and currently employs around 1,100 people in eight countries.
Subject to regulatory approvals, the aim is to complete the deal in the first half of 2021.
Norwegian billionaire Stein Erik Hagen's Canica investment company is set to become the single biggest shareholder with a stake of 22.4%, while the Finnish government will hold 19.4% of the combined firm.
'Scale And Efficiency'
“Through added scale and more efficient production, we can further strengthen our leading sustainability position," commented Pekka Tennilä, CEO of Altia. "Joining forces will provide significant growth potential in exports and create better possibilities to bring our iconic brands and sustainable Nordic drinks experiences to new markets.
"I also believe the combination will improve our image as an attractive employer in the Nordics and offer even better development opportunities for our professionals in a Nordic inclusive working culture.”